Aluminium production reaches all time high,prices can face pressure
LME Aluminium averaged at $ 1812.75 per tonne, up 6.4 % in the month ending 30 April 2014. However prices are expected to face pressure due to rise in production to all time highs. The rise has come at the time when the production of Aluminium reached record levels. The viability in terms of upcoming demand in Aluminium remains grim even though the prices saw sharp appreciation last month.
The data estimates from International Aluminium Institute (IAI) showed that the total primary Aluminium production reached 4.33 million tonnes in the month of March 2014 from 3.96 million tonnes in January 2014. This is the all time high production of Aluminium. The production of Aluminium in March 2014, gained by 5.1% compared to corresponding period last year when it was 4.12 million tonnes.
China remained the major contributor for this rise. The total reported production in China was 1.984 million tonnes in March 2014, indicating a 45.8% share in the world primary production. Production of China in January 2014 was 1.93 million tonnes. Unreported production in China is estimated around 200000 tonnes.
